HSBC has launched its new fund that offers upside exposure to growth in emerging markets, along with full capital protection.
The HSBC Capital Protected Plan and ISA- Issue 8 are the first investment products to offer exposure to the HSBC Global Emerging Markets Titans Index.
At the end of a six-year period, investors will receive a return equivalent to growth in that index. Therefore, if the index is up by 50% over the period, investors will have initial capital returned in full, along with a 50% return. Growth is capped at 70% of the initial investment and returns are calculated by averaging the index at weekly points in the final year.
A key feature of the new product is the full capital protection, provided the investment is held for a six-year investment period. Therefore, even if the HSBC Global Emerging Markets Titans index falls over that period, capital will still be returned in full.
As a stocks and shares individual savings account (ISA), the Capital Protected ISA accepts subscriptions up to GBP7,200, with no liability to income tax or capital gains tax on returns. It is also possible to transfer existing cash or stocks and shares ISAs into the HSBC Capital Protected ISA.
Minimum lump sum investment is GBP3,000. The maximum investment for a 2008/09 tax-year stocks and shares ISA is GBP7,200. There is no maximum investment if investing in the HSBC Capital Protected Plan or transferring a previous or current tax-years ISA held with HSBC or another ISA manager.